Fake Trading Bots on YouTube Drain Over 256 ETH: SentinelLABS

Cybersecurity company SentinelLABS has exposed a large-scale crypto fraud that exploits dormant YouTube accounts for selling forged crypto trading bots. The bots are compromised smart contracts that will steal money from users.

SentinelLABS senior threat researcher Alex Delamottea revealed that since January 2024, scammers have been posting videos on how to deploy a “crypto trading bot.” The videos instruct watchers to replicate and deploy a smart contract using the Remix tool. However, after deployment, the smart contract provides the scammer with secret access to the wallet of the user. The attacker’s wallet is spoofed to appear as a normal trading address.

Over $939K Stolen So Far

Scammers deceive victims into sending at least 0.5 ETH (approximately $1,829) under the guise of paying for gas fees and maximizing returns. Although, in reality, this deposit triggers the scam.

So far, more than 256 ETH has been stolen. Alex Delamottea’s research identified multiple scam wallets; one recently received 7.59 ETH, another 4.19 ETH, and a third 244.9 ETH, totaling over $939,000.

Delamottea also pointed out that some wallets are reused in different scams, while many other unique addresses are involved, making it difficult to determine exactly how many scammers are behind the operation.

Fake YouTube Accounts and AI Videos

The trick depends on old YouTube accounts that previously posted regarding crypto, finance, or pop culture. These outdated accounts seem more credible and are probably purchased via Telegram or websites selling YouTube accounts, Delamottea said.

Most of the videos are computer-generated, with robotic speech and abnormally rendered images. This is convenient for scammers to produce large quantities of fake videos without their identities being discovered. Scammers remove negative reviews and insert phony testimonials of profits earned from the bot.

How to Stay Safe?

Experts recommend that cryptocurrency users avoid trading bots or software marketed on unverified YouTube or social media channels. If anything offers quick, easy gains with minimal effort, it’s most likely a scam.

To prevent falling prey to these scams, users must research software thoroughly, know how the code operates, and never take blindly at face value random online videos, particularly those that offer links or codes to deploy.

Also Read: MEXC Blocks 70K Scams as Global Crypto Fraud Surges

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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